{"id":16398,"date":"2024-04-09T19:17:41","date_gmt":"2024-04-09T18:17:41","guid":{"rendered":"https:\/\/cassandravoices.com\/?p=16398"},"modified":"2024-04-09T19:17:41","modified_gmt":"2024-04-09T18:17:41","slug":"the-politics-of-the-last-announcement","status":"publish","type":"post","link":"https:\/\/casswp.eutonom.eu\/index.php\/2024\/04\/09\/the-politics-of-the-last-announcement\/","title":{"rendered":"The Politics of the Last Announcement"},"content":{"rendered":"<p><span style=\"font-size: 12pt;\">In December the Irish Fiscal Advisory Council (IFAC) published a <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.irishtimes.com\/business\/economy\/2023\/12\/10\/when-ifac-accuses-government-of-fiscal-gimmickry-what-does-it-mean\/\">comparatively critical review<\/a> <\/span>of the government\u2019s Budget 2024. Criticisms of \u2018bad budgeting\u2019 arose from the \u2018lack of transparency,\u2019 and the use of \u2018fiscal gimmickry.\u2019 IFAC defined the latter as \u2018creative accounting techniques\u2019 used to make the numbers \u2018look more favourable than they are.\u2019<\/span><\/p>\n<p>The <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.irishtimes.com\/business\/economy\/2023\/12\/10\/when-ifac-accuses-government-of-fiscal-gimmickry-what-does-it-mean\/\"><em>Irish Times<\/em> described this<\/a><\/span> as \u2018an extraordinary broadside against the Government\u2019, with <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.irishtimes.com\/business\/economy\/2023\/12\/10\/when-ifac-accuses-government-of-fiscal-gimmickry-what-does-it-mean\/\">RTE referring<\/a><\/span> to IFAC\u2019s assessment as \u2018controversial.\u2019 However, as <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.rte.ie\/news\/business\/2024\/0216\/1432695-fiscal-council-stands-over-comments\/\">IFAC made clear in February<\/a><\/span>, they were standing firm behind their \u2018perfectly valid\u2019 analysis which they stated was backed by \u2018substantial evidence and reasoning in support of this conclusion.\u2019<\/p>\n<p>This episode had me wondering whether similar kinds of \u201cfiscal gimmickry\u201d are at work outside of budget time, specifically when Ministers are out making what are nominally \u2018new\u2019 funding announcements. You will of course be familiar with this type of thing.<\/p>\n<p>It goes something like this: a Minister appears on RTE, or broadcasts via their social media platforms, that they are \u2018delighted\u2019 to be announcing x million for some initiative. Now the ordinary person probably never stops to consider whether this is new expenditure for a new program, additional expenditure for an existing program, or simply existing expenditure for an existing program.<\/p>\n<p>But to be fair to the average voter, there are a few Ministers that probably never to stop to ask this question themselves. What matters to them is that they are out and seen to be doing things \u2013 energy in lieu of action. If taking a bit of creative licence results in positive media coverage, then some see that as all well and good.<\/p>\n<p>I must confess that for some time I\u2019ve been puzzled by how some Ministers seemed to be making \u2018new\u2019 multi-million announcements every other week, whilst for others such announcements were few and far between. So, I thought I would investigate the matter. As we\u2019ll see, this is where a kind of \u201cfiscal gimmickry\u201d meets the \u2018the politics of the last announcement.\u2019<\/p>\n<p>In Table 1 we can see the number of funding related announcements made by all our current government ministers (excluding the Taoiseach) in 2023. We have a total of fourteen Ministers spread across seventeen Departments. The median amount (think middle value) of funding announcements made last year was 11.5, so just under one funding announcement per month.<\/p>\n<p>As we can see, half of our Ministers made less than this, and some significantly less. For instance, Messrs McGrath (6) and Donohue (5), perhaps the two Ministers most associated with the word \u2018prudent\u2019, were certainly amongst the most judicious. The same goes for Minister McEntee (4), although she was off on maternity leave for a period.<\/p>\n<p>Just three Ministers; Harris (32), Martin (30) and Humphreys (21) were significantly higher. But to be fair to Heather Humphreys she is Minister of two departments (Social Protection\/Rural and Community Development), so it\u2019s really just Harris and Martin that were so far ahead of the pack.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Frank Armstrong commends Miche\u00e1l Martin for laying out his political  philosophy, but takes issue with his claim to occupying a &#39;liberal&#39;  middle ground.<a href=\"https:\/\/twitter.com\/frankarmstrong2?ref_src=twsrc%5Etfw\">@frankarmstrong2<\/a> <a href=\"https:\/\/twitter.com\/paddycosgrave?ref_src=twsrc%5Etfw\">@paddycosgrave<\/a> <a href=\"https:\/\/twitter.com\/BowesChay?ref_src=twsrc%5Etfw\">@BowesChay<\/a> <a href=\"https:\/\/twitter.com\/MichealMartinTD?ref_src=twsrc%5Etfw\">@MichealMartinTD<\/a> <a href=\"https:\/\/twitter.com\/vincentbrowne?ref_src=twsrc%5Etfw\">@vincentbrowne<\/a> <a href=\"https:\/\/twitter.com\/connolly16frank?ref_src=twsrc%5Etfw\">@connolly16frank<\/a> <a href=\"https:\/\/t.co\/JjCnwzRIc2\">https:\/\/t.co\/JjCnwzRIc2<\/a><\/p>\n<p>&mdash; CassandraVoices (@VoicesCassandra) <a href=\"https:\/\/twitter.com\/VoicesCassandra\/status\/1666851457780285445?ref_src=twsrc%5Etfw\">June 8, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><strong><em>What\u2019s the explanation?<\/em><\/strong><\/p>\n<p>Could it be that they occupy larger spending Departments and hence their respective Ministers need to make more funding related announcements? Considering neither of these Departments is in the top five in terms of expenditure, however, and indeed Martin\u2019s is forth from bottom, that doesn\u2019t seem to account for it.<\/p>\n<p>The second largest spender is the Department of Health, but Minister Donnelly made one of the fewest amounts of funding announcements (6). In fact, the size of a Department\u2019s expenditure seems to have almost zero relationship with the number of funding announcements that its Minister makes.<\/p>\n<p>As we can see from <strong>Figure 1<\/strong> there\u2019s no statistically significant relationship between the size of a department\u2019s expenditure and the number of funding announcements its respective Minister makes.<\/p>\n<table width=\"964\">\n<tbody>\n<tr>\n<td width=\"123\"><strong><em>Minister<\/em><\/strong><\/td>\n<td width=\"217\"><strong><em>Department(s)<\/em><\/strong><\/td>\n<td width=\"170\"><strong><em>No. funding related announcements (2023) <\/em><\/strong><\/td>\n<td width=\"246\"><strong><em>Department(s) Gross Expenditure \u20ac000\/rank (2023) <\/em><\/strong><\/td>\n<td width=\"208\"><strong><em>Comment<\/em><\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"123\"><em>Simon Harris<\/em><\/td>\n<td width=\"217\">Further and Higher Education, Research and Innovation<\/td>\n<td width=\"170\">32<\/td>\n<td width=\"246\">\u20ac4,092,446<\/p>\n<p>(<em>6<sup>th<\/sup> place<\/em>)<\/td>\n<td width=\"208\"><\/td>\n<\/tr>\n<tr>\n<td width=\"123\"><em>Catherine Martin<\/em><\/td>\n<td width=\"217\">Tourism, Culture, Arts, Gaeltacht, Sport and Media<\/td>\n<td width=\"170\">30<\/td>\n<td width=\"246\">\u20ac1,165,509<\/p>\n<p>(<em>13<sup>th<\/sup> place<\/em>)<\/td>\n<td width=\"208\"><\/td>\n<\/tr>\n<tr>\n<td width=\"123\"><em>Heather Humphreys<\/em><\/td>\n<td width=\"217\">Social Protection\/Rural and Community Development<\/td>\n<td width=\"170\">21<\/td>\n<td width=\"246\">SP &#8211; \u20ac23,901,145 (<em>1<sup>st<\/sup> place<\/em>)<\/p>\n<p>RCD &#8211; \u20ac428,981 (<em>17<sup>th<\/sup> place<\/em>)<\/td>\n<td width=\"208\">Minister for two Departments<\/td>\n<\/tr>\n<tr>\n<td width=\"123\"><em>Norma Foley<\/em><\/td>\n<td width=\"217\">Education<\/td>\n<td width=\"170\">13<\/td>\n<td width=\"246\">\u20ac10,025,107<\/p>\n<p>(<em>3<sup>rd<\/sup> place<\/em>)<\/td>\n<td width=\"208\"><\/td>\n<\/tr>\n<tr>\n<td width=\"123\"><em>Charlie McConalogue<\/em><\/td>\n<td width=\"217\">Agriculture, Food and the Marine<\/td>\n<td width=\"170\">12<\/td>\n<td width=\"246\">\u20ac2,164,509<\/p>\n<p>(<em>9<sup>th<\/sup> place<\/em>)<\/td>\n<td width=\"208\"><\/td>\n<\/tr>\n<tr>\n<td width=\"123\"><em>Roderic O&#8217;Gorman<\/em><\/td>\n<td width=\"217\">Children, Equality, Disability, Integration and Youth<\/td>\n<td width=\"170\">12<\/td>\n<td width=\"246\">\u20ac5,931,759<\/p>\n<p>(<em>5<sup>th<\/sup> place<\/em>)<\/td>\n<td width=\"208\"><\/td>\n<\/tr>\n<tr>\n<td width=\"123\"><em>Darragh O&#8217;Brien<\/em><\/td>\n<td width=\"217\">Housing, Local Government and Heritage<\/td>\n<td width=\"170\">12<\/td>\n<td width=\"246\">\u20ac6,414,089<\/p>\n<p>(<em>4<sup>th<\/sup> place<\/em>)<\/td>\n<td width=\"208\"><\/td>\n<\/tr>\n<tr>\n<td width=\"123\"><em>Michael Martin<\/em><\/td>\n<td width=\"217\">Defence\/Foreign Affairs<\/td>\n<td width=\"170\">11<\/td>\n<td width=\"246\">Defence &#8211; \u20ac1,209,737 (<em>12<sup>th<\/sup> place<\/em>)<\/p>\n<p>FA &#8211; \u20ac1,057,144 (<em>15<sup>th<\/sup> place<\/em>)<\/td>\n<td width=\"208\">Minister for two Departments<\/td>\n<\/tr>\n<tr>\n<td width=\"123\"><em>Eamon Ryan<\/em><\/td>\n<td width=\"217\">Transport\/Environment, Climate and Communications<\/td>\n<td width=\"170\">10<\/td>\n<td width=\"246\">Transport &#8211; \u20ac3,516,269 (<em>7<sup>th<\/sup> place<\/em>) Environment &#8211; \u20ac1,066,060 (<em>14<sup>th<\/sup> place<\/em>)<\/td>\n<td width=\"208\">Minister for two Departments<\/td>\n<\/tr>\n<tr>\n<td width=\"123\"><em>Simon Coveney<\/em><\/td>\n<td width=\"217\">Enterprise, Trade and Employment<\/td>\n<td width=\"170\">7<\/td>\n<td width=\"246\">\u20ac1,621,413<\/p>\n<p>(<em>11<sup>th<\/sup> place<\/em>)<\/td>\n<td width=\"208\"><\/td>\n<\/tr>\n<tr>\n<td width=\"123\"><em>Michael McGrath<\/em><\/td>\n<td width=\"217\">Finance<\/td>\n<td width=\"170\">6<\/td>\n<td width=\"246\">\u20ac600,240<\/p>\n<p>(<em>16<sup>th<\/sup> place<\/em>)<\/td>\n<td width=\"208\"><\/td>\n<\/tr>\n<tr>\n<td width=\"123\"><em>Stephen Donnelly<\/em><\/td>\n<td width=\"217\">Health<\/td>\n<td width=\"170\">6<\/td>\n<td width=\"246\">\u20ac21,358,420<\/p>\n<p>(<em>2<sup>nd<\/sup> place<\/em>)<\/td>\n<td width=\"208\"><\/td>\n<\/tr>\n<tr>\n<td width=\"123\"><em>Paschal Donohoe<\/em><\/td>\n<td width=\"217\">Public Expenditure<\/td>\n<td width=\"170\">5<\/td>\n<td width=\"246\">\u20ac1,670,513<\/p>\n<p>(<em>10<sup>th<\/sup> place<\/em>)<\/td>\n<td width=\"208\"><\/td>\n<\/tr>\n<tr>\n<td width=\"123\"><em>Helen<\/em><\/p>\n<p><em> McEntee<\/em><\/td>\n<td width=\"217\">Justice<\/td>\n<td width=\"170\">4<\/td>\n<td width=\"246\">\u20ac3,428,623<\/p>\n<p>(<em>8<sup>th<\/sup> place<\/em>)<\/td>\n<td width=\"208\">Maternity leave for a period<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>\u00a0<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-16405 size-full\" src=\"https:\/\/cassandravoices.com\/wp-content\/uploads\/2024\/04\/Harris-article.jpg\" alt=\"\" width=\"1152\" height=\"648\" \/>We\u2019ll zoom in on new Taoiseach Simon Harris for three reasons. First, he\u2019s the most prolific in terms of making funding announcements \u2013 averaging almost three a month; secondly, he\u2019s the new Taoiseach so it could provide a window into what his tenure might look like; and thirdly he\u2019s the only Minister I am aware of that has ever been accused of making re-announcements dressed up as new spending measures.<\/p>\n<p>In January Simon Harris appeared in DCU for a carefully choreographed photo opportunity. This was off the back of a big announcement he made about seeking Cabinet approval for a \u2018new\u2019 student housing policy. Note: this policy is almost indistinguishable from its predecessor.<\/p>\n<p>Off the back of this he appeared in DCU with the big funding announcement that he was there to \u2018unveil plans for 500 student accommodation beds,\u2019 something he again alluded to during Fine Gael\u2019s Ard Fheis over the weekend. The glaring problem with this was, of course, that he\u2019d already announced it last year, with <a href=\"https:\/\/www.dcu.ie\/news\/news\/2023\/mar\/state-investment-more-eu40-million-support-delivery-405-student-accommodation\"><span style=\"color: #0000ff;\">an almost identically choreographed photo opportunity.<\/span><\/a><\/p>\n<p>The Students Union of DCU had clearly got wind of the Minister trying to pull a stunt and were there to confront him. Soon after the Union of Students Ireland chipped in accusing the Minister of recycling old announcements which amounted to \u2018<a href=\"https:\/\/usi.ie\/usi-news\/government-engaging-in-smoke-and-mirrors-in-relation-to-student-accommodation-usi\/\"><span style=\"color: #0000ff;\">engaging in smoke and mirrors\u2019 in the hopes that \u2018no one will look beyond the headlines<\/span>.\u2019<\/a><\/p>\n<p>So, is this characterisation of Harris fair? Let\u2019s take a look at some of his other creative accounting announcements. In June 2023 <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/inhef.ie\/improved-access-for-students-with-an-intellectual-disability-as-minister-harris-launches-e9-million-funding\/\">he announced<\/a><\/span>: \u2018Today I am launching a \u20ac9 million fund for higher education institutions to improve access to higher education for students with an intellectual disability.\u2019<\/p>\n<p>It was in 2022, however, when he first launched what was then a \u20ac12 million fund. It was to work as follows; \u20ac3 million would be disbursed in 2022, with the remainder disbursed over 2023-25. So, essentially it is \u20ac3 million a year over four years. Yet with Harris\u2019 approach \u20ac12m can be announced one year, \u20ac9 million the next, \u20ac6m the year after and then \u20ac3 million in the final year!<\/p>\n<p>If you weren\u2019t following closely, you would be forgiven for thinking this has been a total of \u20ac30 million (12 + 9 + 6 + 3) rather than the \u20ac12 million that was originally set aside. Now the Minister could surely counter that what he said was technically correct, and he would have a point.<\/p>\n<p>Such announcements, however, as the USI pointed out, are made on the assumption that most people don\u2019t look beyond the headlines. Or read the Department\u2019s press release which will usually contain explanatory notes.<\/p>\n<p>In October in the wake of Budget 2023, where the Minister was severely criticised for having produced no new funding for student accommodation, he suddenly appeared <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/twitter.com\/SimonHarrisTD\/status\/1717506593992958238\">to announce<\/a><\/span> that he was \u2018Delighted to announce a new \u20ac434 million student accommodation partnership, which will help build over 2,000 beds on college campuses across the country.\u2019<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Delighted to announce a new \u20ac434 million student accommodation partnership, which will help build over 2,000 beds on college campuses across the country.<\/p>\n<p>Thanks to <a href=\"https:\/\/twitter.com\/EIB?ref_src=twsrc%5Etfw\">@EIB<\/a> and @HFA_Ireland for the initiative. Applications are now open. <a href=\"https:\/\/t.co\/PDaenm2VxI\">pic.twitter.com\/PDaenm2VxI<\/a><\/p>\n<p>&mdash; Simon Harris TD (@SimonHarrisTD) <a href=\"https:\/\/twitter.com\/SimonHarrisTD\/status\/1717506593992958238?ref_src=twsrc%5Etfw\">October 26, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>This one seemed to catch everyone off guard, including the universities, his Cabinet colleagues and the opposition. One of the glaring problems with this announcement was there was nothing new in it. Not only can the universities already borrow from the EIB, they already have significant borrowings. Their issue isn&#8217;t being able to access borrowing, it\u2019s their ability to repay the money sustainably. Several universities are already grappling with financial deficits this year. Indeed, the entire sector has to deal with a core funding deficit of over \u20ac200 million, which is a hangover from the Austerity period \u2013 a shortfall he was supposed to address but has now left to his successor to sort out.<\/p>\n<p>If his past Ministerial performance proves a good indicator of Simon Harris\u2019 future performance as Taoiseach, then we can expect big announcements, and then big announcements with even bigger bells on. But scratch beneath the surface and you\u2019ll probably find some fiscal gimmickry afoot. I just hope that when these big announcements come, they will be met with equivalent levels of scrutiny by our media and state broadcaster.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In December the Irish Fiscal Advisory Council (IFAC) published a comparatively critical review of the government\u2019s Budget 2024. Criticisms of \u2018bad budgeting\u2019 arose from the \u2018lack of transparency,\u2019 and the use of \u2018fiscal gimmickry.\u2019 IFAC defined the latter as \u2018creative accounting techniques\u2019 used to make the numbers \u2018look more favourable than they are.\u2019 The Irish [&hellip;]<\/p>\n","protected":false},"author":331,"featured_media":16401,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23,4],"tags":[320,576,1468,1698,1699,1819,2112,4551,5354,7377,8407,8412,8851,8922,9233],"class_list":["post-16398","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-comment","category-current-affairs","tag-affairs","tag-announcement","tag-cassandra-voices-simon-harris","tag-cillian-doyle","tag-cillian-doyle-cassandra-voices","tag-comment","tag-current","tag-irish-fiscal-advisory-council","tag-last","tag-politics","tag-simon-harris","tag-simon-harris-spending-announcements","tag-taoiseach-simon-harris","tag-the","tag-the-politics-of-the-last-announcement"],"_links":{"self":[{"href":"https:\/\/casswp.eutonom.eu\/index.php\/wp-json\/wp\/v2\/posts\/16398","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/casswp.eutonom.eu\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/casswp.eutonom.eu\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/casswp.eutonom.eu\/index.php\/wp-json\/wp\/v2\/users\/331"}],"replies":[{"embeddable":true,"href":"https:\/\/casswp.eutonom.eu\/index.php\/wp-json\/wp\/v2\/comments?post=16398"}],"version-history":[{"count":0,"href":"https:\/\/casswp.eutonom.eu\/index.php\/wp-json\/wp\/v2\/posts\/16398\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/casswp.eutonom.eu\/index.php\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/casswp.eutonom.eu\/index.php\/wp-json\/wp\/v2\/media?parent=16398"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/casswp.eutonom.eu\/index.php\/wp-json\/wp\/v2\/categories?post=16398"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/casswp.eutonom.eu\/index.php\/wp-json\/wp\/v2\/tags?post=16398"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}